STEALTHGAS INC. Reports First Quarter 2013 Financial and Operating Results
ATHENS, Greece, May 23, 2013 (GLOBE NEWSWIRE) -- STEALTHGAS INC.
(Nasdaq:GASS), a ship-owning company primarily serving the liquefied petroleum
gas (LPG) sector of the international shipping industry, announced today its
unaudited financial and operating results for the first quarter ended March
31, 2013.
First Quarter 2013 Results:
*Revenues for the three months ended March 31, 2013, amounted to $29.4
million, an increase of $0.3 million, or 1.0%, compared to revenues of
$29.1 million for the three months ended March 31, 2012, primarily due to
the higher number of vessels under spot charters in the 2013 period.
*Voyage expenses and vessels' operating expenses for the three months ended
March 31, 2013 were $3.5 million and $8.0 million, respectively, compared
to $2.6 million and $7.7 million for the three months ended March 31,
2012. The $0.9 million, or 34.6%, increase in voyage expenses was
primarily due to the higher number of vessels under spot charters in the
2013 period.
*Drydocking Costs for the three months ended March 31, 2013 were $0.5
million as only one vessel was drydocked during the period, compared to
three vessels being drydocked during the same period last year at a cost
of $1.3 million.
*No vessel sales took place during the three months ended March 31, 2013
while for the same period in 2012 a $1.3 million gain on sale of a vessel
was reported.
*As a result of the above, net income for the three months ended March 31,
2013 was $6.5 million, or $0.31 per share, compared to net income of $7.4
million, or $0.36 per share, for the three months ended March 31, 2012.
*Included in the first quarter 2013 results are net gains from interest
rate derivative instruments of $0.03 million. Interest paid on interest
rate swap arrangements amounted to $1.18 million, or $0.06 per share and
change in fair value of the same arrangements amounted to $1.21 million.
Adjusted net income was $5.3 million or $0.26 per share for the three
months ended March 31, 2013 compared to $5.2 million or $0.25 per share
for the same period last year.
*EBITDA for the three months ended March 31, 2013 amounted to $15.8
million. Reconciliations of Adjusted Net Income and EBITDA to Net Income
and Adjusted EBITDA to Adjusted Net Income are set forth below.
As of March 31, 2013, cash and cash equivalents amounted to $42.4 million and
total debt to $336.0 million. During the three months ended March 31, 2013
debt repayments amounted to $9.4 million.
An average of 37.0 vessels were owned by the Company during the three months
ended March 31, 2013, as well as during the same period of 2012. As of today,
charter coverage for the fleet is 77% through the end of 2013 and 47% for
2014.
CEO Harry Vafias commented
The first quarter was another quarter of healthy profit for the Company. It
could have been better if it were not for some events like the expensive
dry-docking of one of our ships trading in South America and some repairs and
offhire that had to be undertaken on another spot trading ship in the east.
The freight market remained stable during the quarter. We managed to conclude
a number of period charters: a three year time charter for the Chiltern which
was coming off a bareboat charter, a one year time charter for the Gas Legacy
including a further two optional years, a one year time charter extension for
the Gas Cerberus and a six month time charter extension for the Gas Monarch.
This is part of our short term strategy to reduce the number of vessels
available in the spot market and conclude more period charters of various
lengths as our fleet grows. Regarding our medium term strategy on April 30, we
have successfully concluded a public offering of 11,500,000 shares of common
stock, inclusive of the underwriters' over-allotment option, at a public
offering price of $10.00 per share. The total gross proceeds from the offering
were $115,000,000. We believe that this offering will allow us to grow faster
predominantly with new high tech newbuildings, and we are currently actively
seeking for the optimal deployment of the capital raised. Over the next two
years we have already committed to grow the fleet by at least nine LPG vessels
and have significant financial firepower for further expansion. In the medium
term we aim to control 20-25% of the international 3000-7500 cbm pressurised
LPG market. This is an opportune time to take advantage of the positive
fundamentals in our core LPG sector, a low orderbook coupled with increasing
product supplies coming out of the Middle East and the US that we believe will
prove to be positive for the freight markets in the years to come.
Conference Call details:
On May 23, 2013 at 10:00 am ET, the company's management will host a
conference call to discuss the results and the company's operations and
outlook.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1866 682 8490 (US Toll Free Dial In) or 0844 571
8957 (UK Toll Free Dial In).
In case of any problems with the above numbers, please dial +1 631 621 5256
(US Toll Dial In), or +44 (0)1452 555 131 (Standard International Dial In).
Access Code: 75036430.
A telephonic replay of the conference call will be available until May 29,
2013 by dialing 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll
Free Dial In) or +44 (0)1452 5500 00 (Standard International Dial In). Access
Code: 75036430#
Slides and audio webcast:
There will also be a live-and then archived webcast of the conference call,
through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the
live webcast should register on the website approximately 10 minutes prior to
the start of the webcast.
About STEALTHGAS INC.
Headquartered in Athens, Greece, StealthGas Inc. is a ship-owning company
primarily serving the liquefied petroleum gas ("LPG") sector of the
international shipping industry. StealthGas Inc. currently has a fleet of 33
LPG carriers with a total capacity of 161,822 cubic meters, three medium range
product tankers and one Aframax oil tanker with a total capacity of 255,804
deadweight tons. The Company has agreed to acquire nine LPG carriers, with
expected deliveries in 2013, 2014 and 2015. Once the acquisition of the nine
LPG carriers is completed and the vessels are delivered, StealthGas Inc.'s LPG
carrier fleet will be composed of 42 LPG carriers with a total capacity of
211,222 cubic meters. StealthGas Inc.'s shares are listed on the NASDAQ Global
Select Market and trade under the symbol "GASS."
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of
historical facts. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, management's examination of
historical operating trends, data contained in our records and other data
available from third parties. Although STEALTHGAS INC. believes that these
assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, STEALTHGAS INC.
cannot assure you that it will achieve or accomplish these expectations,
beliefs or projections. Important factors that, in our view, could cause
actual results to differ materially from those discussed in the
forward-looking statements include the strength of world economies and
currencies, general market conditions, including changes in charter hire rates
and vessel values, charter counterparty performance, changes in demand that
may affect attitudes of time charterers to scheduled and unscheduled dry
dockings, changes in STEALTHGAS INC's operating expenses, including bunker
prices, dry-docking and insurance costs, ability to obtain financing and
comply with covenants in our financing arrangements, or actions taken by
regulatory authorities, potential liability from pending or future litigation,
domestic and international political conditions, potential disruption of
shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by STEALTHGAS
INC. with the U.S. Securities and Exchange Commission.
Fleet List and Fleet Deployment
For information on our fleet and further information:
Visit our website at www.stealthgas.com
Fleet Data:
The following key indicators highlight the Company's operating performance
during the first quarters ended March 31, 2012 and March 31, 2013.
FLEET DATA Q1 2012 Q1 2013
Average number of vessels (1) 37.0 37.0
Period end number of vessels in fleet 37 37
Total calendar days for fleet (2) 3,367 3,330
Total voyage days for fleet (3) 3,265 3,307
Fleet utilization (4) 97.0% 99.3%
Total charter days for fleet (5) 2,962 2,789
Total spot market days for fleet (6) 303 518
Fleet operational utilization (7) 95.9% 95.9%
1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number of
calendar days in that period.
2) Total calendar days are the total days the vessels were in our possession
for the relevant period including off-hire days associated with major repairs,
drydockings or special or intermediate surveys.
3) Total voyage days for fleet reflect the total days the vessels were in our
possession for the relevant period net of off-hire days associated with major
repairs, drydockings or special or intermediate surveys.
4) Fleet utilization is the percentage of time that our vessels were available
for revenue generating voyage days, and is determined by dividing voyage days
by fleet calendar days for the relevant period.
5) Total charter days for fleet are the number of voyage days the vessels in
our fleet operated on time or bareboat charters for the relevant period.
6) Total spot market charter days for fleet are the number of voyage days the
vessels in our fleet operated on spot market charters for the relevant period.
7) Fleet operational utilization is the percentage of time that our vessels
generated revenue, and is determined by dividing voyage days (excluding
commercially idle days) by fleet calendar days for the relevant period.
Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted
EPS:
Adjusted Net Income represents Net Income before (gain)/loss on sale of
assets, loss on derivatives, excluding swap interest paid, share based
compensation and unrealized exchange differences. EBITDA represents net income
before interest, income tax expense, depreciation and amortization. Adjusted
EBITDA represents EBITDA before (gain)/loss on sale of assets, loss on
derivatives, excluding swap interest paid, share based compensation and
unrealized exchange differences. Adjusted net income, adjusted EPS, EBITDA and
adjusted EBITDA, are not recognized measurements under U.S. GAAP. Our
calculation of adjusted net income, adjusted EPS, EBITDA and adjusted EBITDA,
may not be comparable to that reported by other companies in the shipping or
other industries. In evaluating Adjusted EBITDA and Adjusted Net Income, you
should be aware that in the future we may incur expenses that are the same
asor similar to some of the adjustments in this presentation.
EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included
herein because they are a basis, upon which we assess our financial
performance. They allow us to present our performance from period to period on
a comparable basis and provide additional information on fleet operational
results. We also use EBITDA to assess our liquidity position and believe it
represents useful information for investors regarding a company's ability to
service and/or incur indebtedness.
(Expressed in United States Dollars, First Quarter Ended March 31,
except number of shares)
2012 2013
Net Income - Adjusted Net Income
Net income 7,379,512 6,458,657
Loss/(Gain) on derivatives 451,528 (28,085)
Less swap interest paid (1,317,148) (1,181,756)
Gain on sale of vessel, net (1,274,965) --
Share based compensation -- 72,155
Unrealized exchange gain (20,416) (885)
Adjusted Net Income 5,218,511 5,320,086
Net Income - EBITDA
Net income 7,379,512 6,458,657
Plus interest and finance costs 2,457,523 2,021,041
Less interest income (47,487) (59,982)
Plus depreciation 7,035,342 7,334,221
EBITDA 16,824,890 15,753,937
Adjusted Net Income - Adjusted EBITDA
Adjusted Net Income 5,218,511 5,320,086
Plus interest and finance costs 2,457,523 2,021,041
Less interest income (47,487) (59,982)
Plus depreciation 7,035,342 7,334,221
Adjusted EBITDA 14,663,889 14,615,366
EPS - Adjusted EPS
Net income 7,379,512 6,458,657
Adjusted net income 5,218,511 5,320,086
Weighted average number of shares 20,552,568 20,552,568
EPS – Basic and Diluted 0.36 0.31
Adjusted EPS 0.25 0.26
StealthGas Inc.
Unaudited Consolidated Statements of Income
(Expressed in United States Dollars, except number of shares)
For The Three Months
Ended March 31,
2012 2013
Revenues
Voyage revenues 29,122,817 27,013,711
Voyage revenues – related party -- 2,433,750
Total revenues 29,122,817 29,447,461
Expenses
Voyage expenses 2,233,473 3,105,359
Voyage expenses – related party 358,462 365,459
Vessels' operating expenses 7,665,065 6,987,069
Vessels' operating expenses – related party -- 975,339
Dry-docking costs 1,283,085 495,726
Management fees – related party 1,080,170 1,078,200
General and administrative expenses 623,011 681,595
Depreciation 7,035,342 7,334,221
Net gain on sale of vessel (1,274,965) --
Total expenses 19,003,643 21,022,968
Income from operations 10,119,174 8,424,493
Other (expenses)/income
Interest and finance costs (2,457,523) (2,021,041)
(Loss)/Gain on derivatives (451,528) 28,085
Interest income 47,487 59,982
Foreign exchange gain/(loss) 121,902 (32,862)
Other expenses, net (2,739,662) (1,965,836)
Net income 7,379,512 6,458,657
Earnings per share
- Basic 0.36 0.31
- Diluted 0.36 0.31
Weighted average number of shares
-Basic 20,552,568 20,552,568
-Diluted 20,552,568 20,552,568
StealthGas Inc.
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
December 31, March 31,
2012 2013
Assets
Current assets
Cash and cash equivalents 42,273,000 42,413,111
Receivable from related party -- 413,893
Trade and other receivables 3,029,284 2,693,966
Claims receivable 32,835 307,896
Inventories 3,152,407 3,406,849
Advances and prepayments 435,226 597,349
Restricted cash 7,340,655 8,617,536
Total current assets 56,263,407 58,450,600
Non current assets
Advances for vessels under construction 19,321,045 19,428,115
Vessels, net 634,634,671 627,300,450
Other receivables 224,422 366,954
Restricted cash 1,300,000 1,300,000
Deferred finance charges, net of accumulated 1,295,486 1,186,646
amortization of $1,786,158 and $1,894,998
Total non current assets 656,775,624 649,582,165
Total assets 713,039,031 708,032,765
Liabilities and Stockholders' Equity
Current liabilities
Payable to related party 7,288,899 7,447,014
Trade accounts payable 5,927,526 6,111,086
Accrued liabilities 2,855,170 2,857,353
Customer deposits 280,000 --
Deferred income 3,129,671 2,010,896
Fair value of derivatives 539,904 51,332
Current portion of long-term debt 35,787,544 35,787,544
Total current liabilities 55,808,714 54,265,225
Non current liabilities
Fair value of derivatives 5,409,337 4,714,873
Other non current liabilities 222,770 301,551
Long-term debt 309,564,768 300,213,667
Total non current liabilities 315,196,875 305,230,091
Total liabilities 371,005,589 359,495,316
Commitments and contingencies -- --
Stockholders' equity
Capital stock 206,273 206,273
Additional paid-in capital 275,792,164 275,864,319
Retained earnings 66,016,627 72,475,284
Accumulated other comprehensive income/(loss) 18,378 (8,427)
Total stockholders' equity 342,033,442 348,537,449
Total liabilities and stockholders' equity 713,039,031 708,032,765
StealthGas Inc.
Unaudited Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
For The Three Months Ended
March 31,
2012 2013
Cash flows from operating activities
Net income for the period 7,379,512 6,458,657
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 7,035,342 7,334,221
Amortization of deferred finance charges 119,286 108,840
Unrealized exchange gain (20,416) (885)
Share based compensation -- 72,155
Change in fair value of derivatives (865,620) (1,209,841)
Net gain on sale of vessel (1,274,965) --
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables 458,215 192,786
Claims receivable (131,986) (288,545)
Inventories 191,022 (254,442)
Advances and prepayments (81,020) (162,123)
Increase/(decrease) in
Balances with related parties (392,613) (255,778)
Trade accounts payable (486,820) 183,560
Accrued liabilities 536,797 2,183
Other non current liabilities -- 78,781
Deferred income 615,602 (1,118,775)
Net cash provided by operating activities 13,082,336 11,140,794
Cash flows from investing activities
Insurance proceeds 299,299 13,484
Acquisitions and advances for vessels under (23,927,728) (107,070)
construction
Proceeds from sale of vessel, net 1,956,249 --
Increase in restricted cash account (651,689) (1,276,881)
Net cash used in investing activities (22,323,869) (1,370,467)
Cash flows from financing activities
Customer deposits paid -- (280,000)
Loan repayment (9,608,924) (9,351,101)
Proceeds from long-term debt 21,750,000 --
Net cash provided by/(used in) financing 12,141,076 (9,631,101)
activities
Effect of exchange rate changes on cash 20,416 885
Net increase in cash and cash equivalents 2,919,959 140,111
Cash and cash equivalents at beginning of year 43,539,303 42,273,000
Cash and cash equivalents at end of period 46,459,262 42,413,111
CONTACT: Company Contact:
Konstantinos Sistovaris
Chief Financial Officer
STEALTHGAS INC.
011-30-210-6250-001
E-mail: sistovaris@stealthgas.com